Retail spending on credit, debit cards rises in May, snapping decline
The value of core retail spending rose 0.4% to $3.9 billion in May.
New Zealanders spent more on their electronic cards in May, as increased retailing of consumable and durable products offset a flat month in hospitality and a decline in apparel.
The value of core retail spending, which strips out fuel and vehicle-related items, rose 0.4% to $3.9 billion in May, turning around a 0.9% fall in April, according to Statistics New Zealand. On an annual basis, core retail spending on debit and credit cards rose 5% in May compared with the same month a year earlier. Total retail spending, which includes automotive and fuel spending, rose 1.2% last month, for an annual rise of 3.2%.
The dip in April spending prompted some analysts to reassess the strength of consumer confidence after unexpectedly strong growth through the March quarter, and Crown accounts yesterday for the 10 months through April showed the government's take from GST was more than the Treasury projected in its May 21 government budget forecast.
Today's data shows spending on durables rose 0.9% to $1.1 billion in May, snapping April's 1.1% decline, while consumable spending increased 0.6% to $1.7 billion. The gains in the two biggest measures in the index offset flat spending in hospitality, which was unchanged for the second month at $788 million, while electronic card spending on apparel declined for a third month, down 0.8% to $287 million, its lowest monthly level since January.
On an annual basis all four core retail measures rose, with hospitality leading the charge up 9.2% in May from the same month a year earlier, while durables advanced 4.6%. Spending on electronic cards for consumables increased 4.4% in May from a year earlier, while apparel spending edged up 0.1%.
(BusinessDesk)
Suze Metherell
Wed, 10 Jun 2015
Wed, 10 Jun 2015
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Retail spending on credit, debit cards rises in May, snapping decline
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